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Instructions
Critique the vision statement of Google:
“Google's mission is to organize the world's information and make it universally accessible and useful. Our company has packed a lot into a relatively young life.
Since Google was founded in 1998, we've grown to serve millions of people around the world".
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Discussion 5.1: What Price Should We Charge Ourselves?
Slagle Corporation is a large
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Accounting:Consolidated Financial Statements - Intra - Entity Assets Transaction
Discussion 5.1: What Price Should We Charge Ourselves?
Slagle Corporation is a large
manufacturing organization. Over the past several years, it has obtained an
important component used in its production process exclusively from Harrison,
Inc., a relatively small company in Topeka, Kansas. Harrison charges $90 per
unit for this part:
Variable cost per unit
$40
Fixed cost assigned per unit
$30
Markup
$20
Total
$90
In hope of reducing manufacturing
costs, Slagle purchases all of Harrison's outstanding common stock. This new
subsidiary continues to sell merchandise to a number of outside customers as
well as to Slagle. Thus, for internal reporting purposes, Slagle views Harrison
as a separate profit center.
A controversy has now arisen among company officials about the amount that
Harrison should charge Slagle for each component. The administrator in charge
of the subsidiary wants to continue the $90 price. He believes this figure best
reflects the division's profitability: “If we are to be judged by our profits,
why should we be punished for selling to our own parent company? If that
occurs, my figures will look better if I forget Slagle as a customer and try to
market my goods solely to outsiders.”
In contrast, the vice president in charge of Slagle's production wants the
price set at variable cost, total cost, or some derivative of these numbers.
“We bought Harrison to bring our costs down. It only makes sense to reduce the
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Most Popular Content
doable dissertation study, Doctoral Discussion 2 parts help
Part 1To implement a “doable” dissertation study, the doctoral learner must transition from a topic of interest to ide ...
doable dissertation study, Doctoral Discussion 2 parts help
Part 1To implement a “doable” dissertation study, the doctoral learner must transition from a topic of interest to identifying gap in the extant research. That is, the dissertation problem must emerge as a gap from prior research. Discuss the gap you have identified for your dissertation study and the research that outlines the gap for your study. How is your dissertation topic justified by prior research? Explain.Part 2 The Background of the Problem section in Chapter 2 identifies, based on prior research, the gap or need that informs the topic and problem statement for the research study. Discuss the research gap you have identified for your dissertation study. How does this gap inform the problem statement of the study? How does the problem statement, in turn, inform the theoretical foundation you select for the study? How do the problem statement and theoretical foundation inform the development of content for the study’s literature review?
Accounting:Consolidated Financial Statements - Intra - Entity Assets Transaction
Discussion 5.1: What Price Should We Charge Ourselves?
Slagle Corporation is a large
manufacturing organization. O ...
Accounting:Consolidated Financial Statements - Intra - Entity Assets Transaction
Discussion 5.1: What Price Should We Charge Ourselves?
Slagle Corporation is a large
manufacturing organization. Over the past several years, it has obtained an
important component used in its production process exclusively from Harrison,
Inc., a relatively small company in Topeka, Kansas. Harrison charges $90 per
unit for this part:
Variable cost per unit
$40
Fixed cost assigned per unit
$30
Markup
$20
Total
$90
In hope of reducing manufacturing
costs, Slagle purchases all of Harrison's outstanding common stock. This new
subsidiary continues to sell merchandise to a number of outside customers as
well as to Slagle. Thus, for internal reporting purposes, Slagle views Harrison
as a separate profit center.
A controversy has now arisen among company officials about the amount that
Harrison should charge Slagle for each component. The administrator in charge
of the subsidiary wants to continue the $90 price. He believes this figure best
reflects the division's profitability: “If we are to be judged by our profits,
why should we be punished for selling to our own parent company? If that
occurs, my figures will look better if I forget Slagle as a customer and try to
market my goods solely to outsiders.”
In contrast, the vice president in charge of Slagle's production wants the
price set at variable cost, total cost, or some derivative of these numbers.
“We bought Harrison to bring our costs down. It only makes sense to reduce the
transfer price; otherwise the benefits of acquiring this subsidiary are not
apparent. I pushed the company to buy Harrison; if our operating results are
not improved, I will get the blame.”
Will the decision about the transfer price affect consolidated net income?
Which method would be easiest for the company's accountant to administer? As
the company's accountant, what advice would you give to these officials?
8 pages
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When it comes to the criminal justice career, ethical standards do provide guidelines for conduct as an officer of the law ...
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When it comes to the criminal justice career, ethical standards do provide guidelines for conduct as an officer of the law.
5 pages
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Yummy77 was an organization that was started by Ping in Shangai. The need for the business arose from the fact that Ping s ...
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10 pages
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The Significance of Identifying Risks and the Ramifications of Identification of risks is relatively important because it ...
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